HomeBusiness NewsCompanies NewsCIE Automotive India obtains 27% stake in Ijya Renewables to optimise power expenses with solar power
This tactical financial investment will enable CIE Automotive to certify as a captive consumer under existing policies, which need a minimum 26% equity stake in a power producing entity to optimise power expenses.
By CNBCTV18.com September 3, 2024, 12:05:45 AM IST (Published)
CIE Automotive India Ltd revealed today that it has actually participated in an investors' contract to obtain approximately 27% of Ijya Renewables India Project Pvt Ltd's equity on a totally watered down basis. The business will invest Rs 25.54 million in Ijya Renewables to develop captive solar energy plants with an overall capability of 7.5 MWp.
The financial investment will at first represent 49% of Ijya Renewables' paid-up equity share capital. The issuance of quasi-equity instruments to Ijya Renewables' promoter investors will consequently minimize CIE Automotive's stake to 27%. This tactical financial investment will enable CIE Automotive to certify as a captive client under present policies, which need a minimum 26% equity stake in a power creating entity to optimise power expenses.
With this financial investment, CIE Automotive will protect access to green energy from Ijya Renewables' solar energy plant. Upon conclusion, Ijya Renewables will end up being an associate business of CIE Automotive India. The offer is anticipated to be settled within 4 months. Ijya Renewables specialises in establishing and running renewable resource tasks.
CIE Automotive India just recently reported a combined net revenue of Rs 2.17 billion for the June quarter, with income reaching Rs 22.93 billion. Shares of the business closed at Rs 586.50 on the National Stock Exchange, marking an increase of 0.39%.
